Independent Foreclosure Review Payments Surpass $2.6 Billion

WASHINGTON — Almost 3 million people have cashed or deposited more than $2.6 billion in checks related to the Independent Foreclosure Review (IFR) Payment Agreement through August 1, 2013.

The payments result from agreements between the Office of the Comptroller of the Currency, the Federal Reserve Board, and 13 servicers to provide $3.6 billion in payments to borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the following companies, their affiliates, or subsidiaries: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. Almost all of the 4.2 million checks associated with these 13 servicers have now been issued. The 37,000 remaining checks will be sent later this summer.

In July 2013, GMAC Mortgage also reached an agreement with the Federal Reserve Board. The agreement with GMAC Mortgage will result in an additional $230 million paid to 232,000 borrowers.

Because checks were issued with a 90-day expiration date to prevent fraud, checks issued in the early waves of distribution that have not been cashed or deposited have begun to expire. Borrowers wishing to cash checks that have expired can contact Rust Consulting to request that the check be reissued at 1-888-952-9105, Monday through Friday, 8 a.m. - 10 p.m. ET or Saturday, 8 a.m. - 5 p.m. ET.

Notice to Financial InstitutionsInstitutions processing checks are reminded that checks require positive identification. Financial institutions should follow the instructions on the back of the check to validate authenticity.

Regulators encourage borrowers needing foreclosure prevention assistance to work directly with their servicer or contact the Homeowner's HOPE Hotline at 888-995-HOPE (4673) (or at www.makinghomeaffordable.gov) to be put in touch with a U.S. Department of Housing and Urban Development-approved nonprofit organization that can provide free assistance.